Princess Margaret Cancer Centre

Princess Margaret Cancer Centre says it is replacing a Markham prize home with a cash prize of just over $1.3 million. (Princess Margaret Cancer Centre)

A Toronto hospital foundation is no longer offering a home in Markham, Ont., as one of its lottery prizes because of its proximity to a residence where marijuana is grown legally.

The Princess Margaret Cancer Foundation says the property north of Toronto backs onto a home where the owner has a Health Canada licence to legally grow marijuana for personal use.

The foundation says the "growing of a large number of plants in the house has resulted in an intrusive odour in the neighbourhood."

The prize house is being withdrawn from the spring 2016 Princess Margaret Cancer Centre Home Lottery.

It will be replaced with a cash prize worth just over $1.3 million.

The foundation says its decision has the full support of the home builder and the Alcohol and Gaming Commission of Ontario, the licensing body that oversees charitable gaming in the province.